The French ‘Code General des Impots’ fixes that the currency rate to be used in converting foreign values into euros is that of the date of an event such as a sale, but that where the income is continual throughout the tax year the average exchange rate of the year can be used.

Whilst the above comment may explain use for the likes of pension income or the sale of a share or some suchlike asset, what about income which is paid only, say, twice a year, such as dividend income? With regards to sources of income such as dividends which are received only a few times during the course of the year, the rules state that the dividend income is supposed to be converted at the rate applicable on the day the funds are received in a foreign bank account (foreign to France, obviously!).

However, as always, practice and what is the written word often differ, and it is the case that in order to make matters easier for the foreign national taxpayer resident in France, the French Fisc have, to date, accepted the average exchange rate as being the most practical all round.

As to where these figures can be found, the average exchange rate for the tax year is never published by the Fisc, but is taken as being the inter-bank rate. On the other hand, the French Fisc do publish end of quarter exchange rates for all currencies and, for the intervening months, a list for only the main foreign currencies. The fact that these figures are intended for business purposes may explain that they are slightly more advantageous than the actual inter-bank rate on the day, and since they are published by the French tax authority, the Fisc, we use their published 31st December figures for doing the Wealth Tax declarations which are assessed on the 1st January.

Accordingly, this is a list of the average exchange rate and that on 31st December for the main currencies that we come into contact with. Should your currency not be listed, please do go to the enquiry page and send us an e-mail asking us to add your chosen currency to the list.

So, 1000€ would be calculated into US dollars by multiplying the euros by the exchange rate, for example as follows :

1 000 € x 1.47134 = 1 471.34 US$

To find the euros equivalent of a foreign currency, the easiest method is to take the amount of the foreign currency and then divide it by the same exchange rates above, so, for example, to find the equivalent euros value for what is 1 471,34 US$ divide this by the same exchange rate above, for example:

1 471.34 US$ / 1.47134 = 1 000€

To find the value of 1 unit of a foreign currency into euros, take the number 1 and divide by the exchange rate as above for the relevant currency:

1 US$ / 1.47134 = 0.67965 €